Thanks to the prevalence of discounting, most reps will encounter price objections from prospects. But, just because your competitors are slashing prices, it doesn’t mean that you should. While discounting certainly has its place in the industry, it shouldn’t be your knee-jerk reaction. Luckily, Aja Frost has some tips for handling price objections that will keep the prospect happy AND not cut into potential revenue. First, she explains how and when to discuss costs with a prospect. Then, she gives her suggested responses to the common objection that something is "too expensive." Here are a few from her article on HubSpot:
“Too expensive compared to what?”
Because expensive is such a relative term, this response clues you in to who or what exactly your service is compared. Chances are, the prospect may not have a specific example in mind. If he or she does, this allows you to directly compare your service’s value to the competitor.
“How are you coming to the conclusion that it’s too expensive?”
This encourages the prospect to break down her reasoning, which allows you the chance to identify (and address) specific concerns.
“How much will it cost you to do nothing?”
Reveal the hidden costs of inaction and encourage him to think of the bigger picture.
“Let’s explore some creative strategies for fitting this into your budget.”
If it’s a funding issue, consider a workaround such as unbundling or billing in stages. This can save the sale, showcase your flexibility and not make you compromise on cost.
"In your own business, is your product/service always the least expensive option available?"
As a B2B salesperson, this may help put things into perspective for the prospect. “The buyer's organization has to win deals too, and they probably do it on value and not just price,” Frost explains. “If delivered correctly, this line might elicit a chuckle — and a signed contract.”
These are just a few examples of Frost’s impressive list of 30 potential responses. Having these ready for the inevitable price objection can mean the difference between cutting costs and closing the deal as-is.